Sales and Use Tax Regulations

Sales and Use Taxes collected by jurisdiction - FY 2008 ( 13k)

For more information on sales tax for the City of Littleton, Colorado, call or email Sales Tax Revenue Technician Leann Battin at 303-795-3768.

Reference: Littleton City Code — Title 3, Chapter 9

Who must obtain a sales tax license?
Any person engaged in the business of selling tangible personal property at retail in the City must obtain a City sales tax license for each retail establishment prior to conducting business. NO LICENSE IS TRANSFERABLE. Business establishments located outside the City limits who sell tangible personal property to Littleton businesses or residents at retail and have the items delivered to the in-City location must also obtain a sales tax license. There is no charge for a sales tax license.

Who must collect the sales tax?
Every vender must collect the 3% sales tax on the purchase price or sales price paid or charged for tangible personal property and certain taxable services when purchased, leased, rented or sold at retail within the City of Littleton (wholesale exempt).

How do I file the tax due?
After you have completed the application and a sales license has been issued, you will receive a sales tax return at the beginning of the month immediately following the reporting period (i.e., the last day of the month). The return must be completed and returned with the proper remittance on or before the 20th day of the month following the reporting period. For filing the return on time, you receive a 2.5% deduction (maximum of $100) called a "Vender’s Fee" which is to compensate you for your cost of collecting and remitting the tax.

What happens if I fail to file the return on time?
Returns and payments received after the 20th will be considered late. The "Vender’s Fee" is not allowed when returns and payments are filed late. If you do not file the City tax return with the proper penalty and interest within ten days from the due date, (20th day of the following month), a "Notice of Assessment" will be sent. The taxpayer (vender) then has ten days from the date of mailing to file the delinquent return with the proper penalty and interest, pay the amount of the assessment, or request in writing to the Revenue Manager, a revision or modification of the assessment. If the assessment is not satisfied within a ten day period, a summons to Municipal Court may be issued.

What else should I know about sales tax?
Excess City sales tax collected must be remitted to the City on Line 6 of the sales tax return.

You must file a return even if you have not made any sales during the tax period. By filing this return, a delinquency notice will not be generated.

You must maintain your books and records used in determining your tax liability for a period of three (3) years. This is because in the event your business is selected for an audit, for whatever reason, the records will be available for review. The burden of proof of exempt sales and purchases rests with you. All information provided by you to the City of Littleton will be kept confidential.

What is a "One Time Use Tax"?
If you purchase an existing business within the City limits or establish a new business within the City limits, a one time use tax of 3 percent must be paid on the purchase price of all furniture, fixtures, equipment and supplies made incidental to the opening of your business. This "One Time Use Tax" form will be sent to you along with your license. This form must be completed and returned to the City within 30 days even if no taxable purchases were made.

What is a "General Use Tax"?
A "General Use Tax" is a 3 percent tax imposed on every person in the City for the privilege of storing, using or consuming, in the City, any articles of tangible personal property purchased at retail and not subjected to City sales tax without regard to whether the property is purchased from sources within or outside the City. The tax due should be shown on Line 10 on the front of the sales tax return. A detailed list of the equipment purchased does not need to be included on the return itself. However, a list should be maintained by your business.

No use tax will be collected or paid on items already subjected to the retail sales tax.

What do I need to do if and when I sell or discontinue my business?
Within 10 days after selling or discontinuing your business, you must complete a return stating the date you sold or discontinued your business and pay all collected and due sales tax prior to that date. Your license should be submitted along with your final payment.

Do I have to pay sales tax on gifts or premiums?
Any person purchasing tangible personal property to give away in any manner is a user or consumer and is liable for the tax. This includes advertising gifts of all kind in addition to prizes given in games of chance or skill or as premiums.